Chinese oil firm pulls out of Iranian offshore gas field

South Pars Oil FieldChina National Petroleum Corp (CNPC) has withdrawn from developing Phase 11 of the South Pars gas field, offshore Iran, following a host of delays on the project

According to a report by Dow Jones, China’s largest oil producer failed to start preliminary steps for the project, such as levelling the land, after it had signed a US$5 billion contract with the Iranian authorities in 2009 to develop the gas field.

CNPC joined the project after Tehran had accused French oil giant Total SA of delaying the project.

Iran had estimated that the project would produce two billion cu/m of natural gas and 70,000 barrels of gas condensates a day. The country’s authorities, however, had warned CNPC in 2011 that it would cancel its contract with the company if delays in developing the field continued.

CNPC, who had delayed the South Pars gas project for more than 1,130 days, has now withdrawn its workers from the onshore part of South Pars gas field.

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